Hi! I’m excited to be here in your channel and I’m interested in learning more about investing and saving up for my retirement but am a little confused about the whole process. Any advice or tips to get me started up would be greatly appreciated.
Most people either do not understand the power of compound interest, or are just impatient. For the average Joe, however. I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter
You're absolutely right about the power of compound interest and the long-term potential of investing in index funds like the S&P 500. For many, passive investing in broadly diversified funds can be a reliable strategy over time.
Employing a professional financial analyst or advisor can certainly add value by offering tailored advice, portfolio diversification, risk management, and timely insights. Their expertise can potentially speed up wealth creation and navigate market complexities, but it's important to choose someone reputable and consider their fees, as they can impact your overall returns.
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash I invested the money using an analyst, and in seven months, I raked in almost $673,000
I'm actually interested in this idea of investing through an analyst. Sounds like the most sensible thing to do in the market right now. Could you give me a pointer to who you work with, please?
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
“ Margaret Johnson Arndt is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
i retired at 62 im now 67 never looked back my net worth is little over 1 million dollars home is 1 million bank 154,000 in the bank income ss 2,000, union pension 1300, wife ss 1,000 our rental income from our 2 family home is 2300 a month and ebay store 600 a month
John Desmond Heppolette's approach is pivotal for achieving success in the realm of online commerce. His management group has showcased outstanding effectiveness, and I also value the content available on his UA-cam channel....
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
The median net worth in The US of about $260,000 is largely driven by the Housing Market current bubble, as the median total retirement accounts in the US at the age of retirement is just $16,000. The US has the highest poverty rate out of all the 34 OECD First World Countries, with only Hungary having a higher poverty rate. BTW --- the median net worth figures you are quoting are actually for a Household in the US, and includes the total net worth of everyone combined living in a household.
I built a couple small apartment buildings to supplement my income because I'm self employed. Now everything's paid off so I make 10k a month on the rentals and a couple off SS. It's more than enough.
Like your concept of "changing the mindset" as regards building then withdrawing from your savings. I process visually and you throw a lot of numbers around. It would be easier for those like me to have a graphic when you provide numbers!
I plan to retire next year at 55. I believe that one reason people carry a mortgage is because some of us have a very low interest rate on our house. I do not worry about paying my house off early because I feel I can make more on my investments. Just my two cents.
We also plan on using Geo arbitrage to make our money go farther. Our home has a detached garage with two one bedroom apartment above it. We have had the apartments on Airbnb for three years. We plan to put our home on Airbnb and have someone manage all three while we are out of the country. That way we will be able to mark any time we want to come home out for our house.
There is a huge mind-set benefit to be totally debt free...it really does bring financial freedom. My advice is to pay off your home mortgage asap because any loan has risk.
Dude, retiring at age 55 is too early (in my opinion). Change jobs if you don’t like what you do. You are heading to your highest earning years. My income doubled from 65-72. The goal is not to not work.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Interesting Roger. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Colleen Janie Towe”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field.
Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.
These low net worth figures and relatively high incomes lead me to believe that this data set is probably being skewed upwards by the generous pensions received by the silent generation. It will be interesting to check back in on these statistics in ten years or so, as I expect that the median boomer/gen Xers are less likely to have income in the form of reliable pensions than the silent generation. Great video.
I retired at 58 years old, debt free with two pensions, a 401k and I started drawing social security at 62 years old. Amazing how you can make more money sitting at the beach then working 10 hours a day 😊😊😊😊😊
Last year I moved from Ontario, Canada to Florida, USA, as a retiree. I paid taxes to Canada for the first 5 months, and taxes to USA for the last 7 months. Canadian taxes included a capital gain, but my total income for those first 5 months was still less than that of the last 7 months. My tax bill for Canada was about $1900. My tax bill for USA was $0.
Florida does not have an income tax, they get their revenue from sales and excise taxes, Therefore, the bulk of Florida taxes do come from the lower working class. The Canadian tax bill covered your OHIP, unless you are a USA citizen, you cover your health costs down south. For US retirees, I imagine Medicare is equivalent in out of pocket costs in Canada. Ontario is generous, when you return to Ontario and reapply for OHIP, you are immediately eligible, no 3 month waiting period like days of old.
If you have a mortgage at 3%, with interest rates having risen, there’s a good case to be made to invest the money making, say 5%, rather than paying it back. It’s known as arbitrage. If you had a $100,000 mortgage, the amount you would make is ~$2000 a year. When I bought my house in 1992, I had an 8% mortgage, so I paid it off as soon as I could. If I had a 3% mortgage right now, though, I would think twice about how your money would be put to best use.
@@skeller61 I don't disagree on the concept, but you should consider taxes and risk. If you can't deduct mortgage interest, the tax on income will approximate the 2% spread in your example. Paying down a mortgage is risk free; as we've recently seen with SVB and Signature, there is risk even with "safe" investments. A two percent spread isn't good enough for me. Maybe if we move to double digit interest rates there could be an opportunity.
@@MikesGoogleAcct Well, I just looked up CD rates (FDIC insured, so no risk unless we have far more serious issues) and they are at about 5%. So, it would basically be a risk free $2000 a year (given the $100,000) for the CD term, which you can reevaluate at the end of term. I have never had enough deductions to itemize, so interest deductions don’t interest me. If filling out a CD form isn’t worth a guaranteed $166 a month to you (plus the small amount of equity you would gain each month), then don’t do it. To me it would be a nice extra source of income.
This was interesting to see the differences between the US and Canada. People here in the US do seem to focus on the mortgage “tax benefit”. It isn’t enough to bother with, when you compare it to savings thousands of dollars in interest; paying off your mortgage and investing the money you have freed up is your best option in my opinion. It also allows me to treat my friends and family to a nice dinner out, a trip or help with buying a car (not buying it, just pitching in a little). This gives them a little leg up and allows them to save more in their saving and investing journey. I am extremely thankful for what I have and that I have enough to share with others too.
@@LopakaDeb Inflation is caused by Joe's over-spending and backwards thinking/policies. He does not control the world, just the US. It's high time to hold him responsible and vote him gone for ever
Saying that you can deduct your mortgage interest might give the wrong impression. I have a beach house that I am paying a mortgage on and still my best choice is the standard deduction. In any case, what you're looking at is the difference between standard deduction and itemized deduction. For a lot of retirees with not a lot of other deductions, standard deduction is still the best choice. For many others, it's not that big a difference.
Exactly. The numbers stated (for the US at least) are for a retired household, NOT a retiree. I would guesstimate per retiree income you’re probably looking at a number that is 75% of the figure stated (maybe even less).
I retired at 54. I did the calculations with my SS and it was not a significant increase. I have a decent 401k, so I retired. I'm single and moved to the Philippines. I set my budget for $1,500 usd, but I often spend alot less because I have no family or wife. Ive had a vasectomy so no future kids to carry into my retirement life. $1500 here is upper middle class in the Philippines.
Statistics Canada reports that the median total income for all Canadians, aged 65 and older, was $33,100 in the most recent data (2021). Meaning that half of the people in this age group make less than this per year. And that's before tax. This is significantly different than what you report ($61,200 after tax). Where does your data come from?
Amid the prevailing economic crisis, a significant portion of the American population encounters challenges in securing a comfortable retirement. For many, their retirement savings fall significantly short of the required amount. In this context, a pressing question arises: should I withdraw funds from my 401k to purchase a property, or diversify my investments into stocks for a sustainable cash flow? My ultimate aim is to maintain a lifestyle that aligns with my preferences and needs post-retirement.
Over an extended period, bonds and other fixed-income instruments have been relied upon to generate the necessary yield, ensuring a stable income stream for retirement necessities. The significance of ensuring financial security might be the driving force behind why individuals from the boomer generation are increasingly seeking guidance from advisors when planning for retirement.
A wealth of valuable insights has been shared in this forum. I find myself at a critical juncture concerning my portfolio, aspiring for its growth as I approach retirement. How can I establish contact with this esteemed professional for guidance?
Excellent share, just inputted her full name on my computer and searched online to find her webpage, top-notch credentials. I've seen commentaries about advisers, but not one looks this phenomenal.
It was made crystal clear in the video that you were presenting MEDIAN net worths, MEDIAN incomes, etc. May I therefore suggest that you remove the word AVERAGE from the title. This isn’t just nitpicking. For example, the AVERAGE net worth of a over-65-year-old led household in the U.S. as of 2019 was $1,105,000 while the MEDIAN was $260,000. “Average Median” is not at all clear.
Good point. The average networth in the city where Jeff Bezos lives will be way higher than the median. Two totally different metrics. Saying average median is like saying height weight.
There are two sides of this equation. You focused on income, but the other side of the equation is cost. We took our U.S. retirement, which would have allowed us a very modest existence in the U.S. and relocated to Ecuador. Our expenses are roughly 1/3 what they were in the U.S. and it allows us a much higher quality of life with the same amount of income.
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
You’re mistake was buying 3 houses didn’t you learn anything from the past 3 years that you don’t own those properties but the government does remember Covid government can make you let tenants live rent free on your property for free and don’t forget about your mortgage can be called upon from banks , also depending on market conditions you could lose most or all your equity so at retirement you could face the possibility of returning back to work which would be horrible,Let’s not forget maintenance and upkeep as you would be a slave to your properties No I would not want to be in your shoes when I am 65 plus I want to be cash rich and just live in my home personal property and only worry about my own property,Their are other ways of obtaining wealth without all the headaches and also remember you may say that you could sell these properties but you will face huge tax consequences or you will say you could do a 1031 but sooner rather than later the tax man will be their with his hand ✋ out to get his cut,these rental properties are only applicable to the very rich who owns huge huge properties and hotels like Donald Trump,so if I were you I would rethink my strategies but of course that’s only my opinion been there done that Good luck to you in your endeavors
The percentage of people who can deduct mortgage interest from their taxes has decreased significantly as a result of tax laws a few years ago. The standard deduction has increased significantly meaning you had to have more deductions (like mortgage interest, local taxes, and contributions) to make it worthwhile to itemize deductions and there is a limit to the amount of local taxes that can be used as an itemized deduction. As a result far fewer people in the US use their mortgage interest as a tax deduction.
Now I have more knowledge about personal finance. I just subscribed to your channel. Big ups to everyone working effortlessly trying to earn a living while building wealth in this recession. I’m 45 and my husband is 51, we are both retired, no debts. We are planning on relocating to Thailand. We are currently living a frugal and financially savvy lifestyle and generating passive income even during this recessionary period. Our commitment to saving and investing in the financial market has enabled us to maintain this lifestyle and continue earning monthly passively through investment;:
Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.
No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Claire Martha Magalhaes to create a long-term investment strategy, and she assisted us in managing our investments while we focused on my jobs without any concerns.
Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Thank you for talking about your financial consultant. I will definitely look her up and try to get in touch with her. I have realized that relying solely on UA-cam videos and attempting to manage my finances on my own hasn't been very effective.
Great point on withdrawing. For people who have been savers and investors for decades, it is quite the paradigm shift to withdraw. Instead of being a great experience it freaks you out. Also, I remember a couple of weeks before my last day, I freaked out thinking I wouldn’t be receiving anymore paychecks. People need videos like this to help them make the transition smoothly.
Info presented in a positive, straight forward, simple way with humour and grace. Women in finance seem more inclined to cut to the chase, no BS. Keep it up.
I would offer this surrounding Net Worth: Don't consider "Things" House, car, boat, aircraft unless you definitely Will convert them to cash. You Need a residence and transportation at a minimum. As a result, they really have no price. A conservative approach is Liquid assets less debt. That gives a truer picture of what you have On Hand that establishes your Net Worth.
@@bb-1359 If you Can't/Won't/Don't convert them to liquidity, what are things worth as cash? Do you take a square of roof shingles to the store to pay for groceries? I thoroughly understand the concept of Net Worth. Nonetheless, a Conservative approach to net worth is Liquid Assets less Debt. That is a better measure of your ability to say "I'll pay for it" when the furnace quits, the car blows up, and the roof leaks.
Retired 6 years ago. Only income is Social Security. Retiring early was the easiest decision I have ever made. Anybody who tells you they like going to work isn't telling you the truth. Please don't misunderstand, I'm not saying people don't like their work, because I know people do, but we should never lose sight of the reason we went to work in the first place. I never went to work because I wanted to, I only went to work because I had to. True it is better to like what you do for a living, but it's more important that you are making a living. That said, I made sure I didn't have to work one more day than I needed to so when I was getting close to 60 I got laser focused on being ready to walk away at age 62. Planning is the key and it's well worth you time to plan.
Do not think you are including everyone when you state that we work because we have to, that we wouldn’t if it weren’t for need of the money. You have no right include me in that mind set. I work because I enjoy it and always have. I am a nurse, I worked at the bedside through COVID, have volunteered at most major hurricanes for the last 25 years…because I want to. I an sorry you have had such a poor experience with work. Sometimes it’s not the experience but rather the attitude.
@@Dit1160 Sorry, but you missed my point entirely. I never had a poor experience with work. I also enjoyed my work, but I also understood the reason I went to work in the first place. Unless you are born into wealth, or marry into wealth, the need to go to work is quite obvious. I even made a point to say it's better if you like what you do. But, at the end of the day the reason we work is to gain the income needed to have a good life. Things like food, clothes, and a roof over your head all cost money, so we go to work. Once we no longer need the money to provide those things, we can retire from work. Anybody and I mean anybody who doesn't enjoy retirement more than working is doing retirement wrong.
Interesting video. I have been retired in the US South for a couple of years and am still adjusting to the financial differences from when I was working. In my case, I elected to carry a mortgage because my interest rate is right at 3% and my retirement funds are growing at a faster rate than that. I did have the option of buying a smaller house and having no mortgage, but right now, I have a better quality house and my retirement funds are still growing faster than I am taking the money out. I have also decided that I will go back to work part-time this winter, not because I need the money, but because I get bored when the winter weather keeps me in the house, and I miss the social interactions from a workplace. Whatever I earn from this will also affect my retirement finances.
Stephan, we share a very closely related status as I too am residing in the south AND even the mortgage interest rate of 3%. I have a mortgage again due to having to live/work overseas due to my wife's job. I must be one of very few retired military guys who has not paid off their mortgage but thanks to a pension/disability/SS (soon), and smart investments early on, I do not fear the future. Good luck to you.
I admit that I have not waded through all the comments below (so if this has already been asked, I apologize), but just wanted to be clear if your numbers are per individual or per household?
At 55,I retired with a decent pension from my RN job.Am collecting Social Security benefits as well.. Glad for you retiring.I hope you have a decent pension .
US Air Force pension, Coca-Cola pension, and social security. My wife has a huge teacher's pension, and a small social security check. Combined? In January, we will go over $100k a year, in pensions. House payment and single car payment is about $2k a month. This leaves us over $4k a month disposable, about a thousand of which takes care of all insurance and utilities. STILL leaves us with $3k in blow money.
Fascinating how much higher the median net worth is for Canadians versus the US. Canadians have socialized health care too. Would love to know the details.
It’s not a 1:1 comparison because first you need to convert CAD to USD. With respect to socialized medicine… at the age she was referring to (65 and older) US retirees also receive socialized medicine.
@@MaxPower-11 yes Americans do get Medicare coverage at age 65, but Medicare is not free. There are monthly premiums for Medicare for all but the poorest Americans. In addition US Medicare does not cover 100% of medical costs. US Medicare actually covers only 80% of Medical costs. Many Americans carry additional private insurance to pay what Medicare doesn't pay or they have "Medicare Advantage" coverage that comes with deductibles, copays and other significant coverage limitations.
Canadians also pay into CPP - Canada Pension Plan, their entire working life. When you retire you will receive Old Age Security and CPP. I'm currently collecting both and living comfortable with no Medical expenses.
Average median income for 65 year old retiree? How are people not working earning more per year than I am working full time? Something seems backwards with our system if I'm understanding this correctly. This is also no longer possible to do for anyone born after 1980 unless a top 20% earner. It's a paycheck to paycheck world from now on.
With the higher standard deductions in the US, the median married retired couple probably does not deduct mortgage interest. If they have a sub 3% mortgage they will not pay off the mortgage earlier as current high-yield savings are around 4.40% and north of 5% for money market funds.
These broad numbers are good for ball park considerations. Where you live in the USA or Canada can make a huge difference. $60,000 a year goes a lot further in Texas or Mississippi than in New York City or San Francisco.
One possibility of the disparity between the two countries regarding net worth may be linked to the price of one's home since it is the largest asset. While certain states like California and Hawaii have very expensive homes, many states have homes which are much less expensive. Thank you for the interesting video.
Great music Maureen first dance of the day. Thank you so much for info I’m at $252k today and you’re making me feel good about it. Thank you for keeping us informed with good info
Yep, as long as you spend less than you bring home. You will not worry about money. However, friends die or move away to be close to family ( my issue) or you find yourself with a health problem. ( thankly not yet.)
So much depends on total income and if you have children, medical issues or have been divorced. Many of us do not make large amounts of money and raise children. The amount we can save is much less as a result. Or in my case, I have had lifelong health issues, was divorced at midlife and have not been able to work fulltime and that has seriously impacted our retirement income. My husband was divorced at age 50 and all these issues impacted our retirement funds. My husband never made more than $40,000 even at his top earning end. As a result, we only had less than $300,000 net worth-including for the two of us (USA) our tiny, 100-year-old mortgage free home.
So much really does depend on so many factors. My hope is no matter what, you live your life to the fullest, within your circumstances. Thanks for sharing Donna.
I agree about the change in mindset required to shift from accumulation of retirement assets to spending those assets. My parents, for example, struggled with that change until very late in their lives. I suppose that was due, in part, to their having lived through the depression. Similarly, even at age 75, I still find it very difficult to spend money from my retirement accounts. I do have a couple of quibbles with your income comparison. Since the US greatly increased the standard deduction a few years ago, most Americans no longer deduct their mortgage interest since most people do not have enough total deductions to itemize rather than take the standard deduction. US incomes are also higher relative to net worth because US Social Security is generally higher than the sum of CPP and OAS. The maximum US social security benefit is about $3,600 US in 2023 and the maximum CPP+OAS is only about $1,500 US in 2023. Consequently, all other things being equal an American needs less income from other sources to achieve a given income level than a Canadian does. Taxation does need to be considered for after tax income, but US income taxes are typically less than Canadian and taxes may be much lower for an American if they live in a state with no income tax. The differences in taxation between Canada and the US coupled with the differences in Social security/CPP+OAS make comparing incomes misleading particularly since all but the poorest Americans do have to pay for health coverage in retirement which Canadians do not. The cost differences in health coverage alone mean that an American needs a considerably higher after tax income than a Canadian does to have equivalent disposable income.
Thank you both. I’m 69 and have been retired for over ten years. My wife died too young to understand that I had planned well for our future. My pension is about $100K a year and I have a great portfolio. My advice to young workers is to start a Roth account and give til it hurts while you are young. When you build a family you may need to back off the contributions, but you’ve got a good start. I’ve got 7 siblings and have baglady contracts with all of them. We joke about winning Powerball and building a family compound.
And contrary to popular belief, my Social Security payment comes to just enough to get a big Mac without fries, and I don’t even get enough to supersize it, unless I get a pay raise as well as pay my own Medicare
you seem like a nice person and i can tell you are a good presenter, but that 1 min and 23 second intro with that strangle music that slowly creeped into the video really has to go. Just start the video at 1:23 and it will be great :)
I hear you,lol. There are three ways of computing an average: mean, median, or mode. Retired teacher here. To get the median, you list the numbers in rank order, then take the number that falls in the middle.
You are using household income, individual US income is about $28,000. If the husband dies first, his ss check is gone, and the wife has less to pay the fixed expenses in life, like insurance, property tax or rent, medical bills...
Wow. My wife and I are retiring this Jan of 23. Based on these numbers we are very blessed to have zero debt, cash reserves, investments, real estate, and a healthy state pension including social security. Our numbers are above the US median on income by a factor of 2 and our net worth is over the US median by a factor of 6. Thank you for these videos.
What a fantastic comment!! It's GREAT to see how others have prepared and how exciting it is! Best of luck in January! I can't wait to hear all about it!!
@@DavidEVogel I don't guess so. Hard to place a value a guaranteed state retirement and social security over of 85K per year. My sister and I own 40 acres of commercial real estate we are developing not counting our home and other assets. No debt with a 275K nest and over 130K in cash reserves. We are certainly blessed.
I don't think your car should be added in your net worth it is a liability not an asset in my eyes it is something that you have to pay to maintain and keep on the road Insurance gas and so on
Many wealthy folks calculate their net worth on assets with a theoretical value: assets that cannot convert to their stated cash value and/or could conceivably disappear due to events beyond their control.
It's just a reminder that there are people living off more or less. Hence unless you have health issues that cost you money, much of your spending will come down to your lifestyle and how comfortable you are with it.
I think the bigger issue between Canada and America is the cost of healthcare and how we are basically brainwashed to think that if we aren't buying something everyday, we are failing.
The tax rules in the USA have changed so that the standard deduction increased and eliminated the advantage of the mortgage interest deduction for most people. It was part of the Trump tax cuts.
If the net worth in the U.S. is 266K, How does that translate to 47K a year in income. Something is off about that. Basically they are getting 4K a month. The 266K sounds like their home value, but even it if were all in investments it still wouldn't put off 4K a month. Some information on how someone with such a low net worth is generating 4K a month in income would be great.
Thanks, this was interesting information. I seem to be right there in the median. For now. My advisor wants me to live on my savings for 3 years to collect social security at 70. Im sure making that first withdrawal is going to hit me hard, as you so aptly pointed out. But im going to try to keep my nerve. Im happy my remaining mortgage has a 3.5 interest rate. I sometimes wish I didn’t have a mortgage at all, but at least I have a stable housing cost. Just wondering, and maybe you said, but are these households two incomes or one?
How's this for confusing. I PLAN to have a mortgage so long as the rates are manageable. I can make more than the interest rate with investing, so I borrow. I had the money for a car, got a loan and invested the money and the car is almost paid for. When it is done, I will have the car and the money. I started off with around 70% of the car payment covered by the investment, but there was a deferred component (bulk pay out in addition to interest) and the end of the term I took another investment with the extra included. This means my new income is 118% of the car payment. I don't really need to have the house paid off, I just need to have the money to pay the house off. My investments for payments are secured loans. The bank increases the interest rates, so do I.
@@Lifestartsatretirement Glad to hear it because there is a part two that goes for those who own their homes. You'll notice there is a bit of an attack on elderly people that may own their home. Because they have no mortgage or liens on the house, it makes it that much easier to assume the property for thieves. If there is a bit of a mortgage on it, the bank would be involved in the sale and anybody trying to take possession of the property would trigger the bank calling you asking you about the sale of your home. In the grand scheme of part two, you have two businesses. One that owns the home and one that manages the home and you rent. This does a few things. If I slip and fall on your property and decide to sue, the management is responsible and can only be sued for the insurance amount. The asset is protected under the other business. I'm just a renter. You are paying rent and in some provinces you can claim it on your income to reduce taxes or there is another benefit. Any repairs are done under the business and is tax deductible. You fix your roof and you have a 60k income. You pay the taxes on 60K income AND you pay full price for the roof. There are also RRSP meltdown strategies to transfer money from your RRSP to a TFSA and reduce the taxes you are paying. I'm not old enough to be there yet, but everything is falling into place. I do practice what I preach. I'm loving being more efficient with money and taxation. Everybody that I know with a lot of wealth has a tax expert that takes care of these maneuvers lawyers and all. I am not going to retire and HOPE the money lasts. I don't do hope that well.
I just retired at 59 from the postal service in June 2024. I cant believe I'm finally free from all the stress and drama of the work place. In the process of putting a house on 40 acres and getting out of the city. Life is good! Praise the Lord!
No pension, no debt, zero net worth,no retirement account or plan, no house, minimal savings, no children, no wife, but hey, there's still some berries in the woods that the bears missed.
Under current US tax code most people are not able to deduct their mortgage interest. Some people have not paid off their mortgage due to quite low interest rates in the last few years, due to the fact that with rising property values and high investment returns one could make more money keeping the mortgage rather than paying it off. I personally believe this is a risky strategy unless you have substantial wealth, with current economic conditions especially. In terms of the income numbers, it gets quite confusing! A lot of figures quote HOUSEHOLD income, that would be a lot of couples, but also some singles or families. Other stats use the term “retiree” The income numbers do usually include all forms of income, as far as I can tell, and decline at ages over 65. Net worth does usually appear to be a household number. As a point in the US the max SS check at age 70 is about $4200, so that is about $50k per year, and few wait that long or have the credits to get the full amount. The average SS check is only $20k per year per person
Hi! I’m excited to be here in your channel and I’m interested in learning more about investing and saving up for my retirement but am a little confused about the whole process. Any advice or tips to get me started up would be greatly appreciated.
Most people either do not understand the power of compound interest, or are just impatient. For the average Joe, however. I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter
You're absolutely right about the power of compound interest and the long-term potential of investing in index funds like the S&P 500. For many, passive investing in broadly diversified funds can be a reliable strategy over time.
Employing a professional financial analyst or advisor can certainly add value by offering tailored advice, portfolio diversification, risk management, and timely insights. Their expertise can potentially speed up wealth creation and navigate market complexities, but it's important to choose someone reputable and consider their fees, as they can impact your overall returns.
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash I invested the money using an analyst, and in seven months, I raked in almost $673,000
I'm actually interested in this idea of investing through an analyst. Sounds like the most sensible thing to do in the market right now. Could you give me a pointer to who you work with, please?
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
“ Margaret Johnson Arndt is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
i retired at 62 im now 67 never looked back my net worth is little over 1 million dollars home is 1 million bank 154,000 in the bank income ss 2,000, union pension 1300, wife ss 1,000 our rental income from our 2 family home is 2300 a month and ebay store 600 a month
John Desmond Heppolette's approach is pivotal for achieving success in the realm of online commerce. His management group has showcased outstanding effectiveness, and I also value the content available on his UA-cam channel....
@@Windarti30scammer
@LewisAtonnSCAM ALERT🚨
@tomaszcz_kSCAM ALERT! 🚨
@@Windarti30SCAM ALERT!🚨
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Good information! A significant difference in the U.S. is the cost of healthcare which bankrupts many retirees.
The interest deduction in the US is virtually gone, most of us do not itemize deductions anymore on our taxes.
The median net worth in The US of about $260,000 is largely driven by the Housing Market current bubble, as the median total retirement accounts in the US at the age of retirement is just $16,000. The US has the highest poverty rate out of all the 34 OECD First World Countries, with only Hungary having a higher poverty rate. BTW --- the median net worth figures you are quoting are actually for a Household in the US, and includes the total net worth of everyone combined living in a household.
This is really shocking.
I built a couple small apartment buildings to supplement my income because I'm self employed. Now everything's paid off so I make 10k a month on the rentals and a couple off SS. It's more than enough.
Good for you!! I love hearing success stories!
Nice work , congratulations 👏
Like your concept of "changing the mindset" as regards building then withdrawing from your savings. I process visually and you throw a lot of numbers around. It would be easier for those like me to have a graphic when you provide numbers!
Many seniors in the U.S. have 30 year mortgages at historically low rates which would explain why they're in no hurry to pay them off.
Or maybe they are renters!
I plan to retire next year at 55. I believe that one reason people carry a mortgage is because some of us have a very low interest rate on our house. I do not worry about paying my house off early because I feel I can make more on my investments. Just my two cents.
I love that idea. It makes perfect sense. And good luck retiring next year. Make sure to tell us all about it!!
We also plan on using Geo arbitrage to make our money go farther. Our home has a detached garage with two one bedroom apartment above it. We have had the apartments on Airbnb for three years. We plan to put our home on Airbnb and have someone manage all three while we are out of the country. That way we will be able to mark any time we want to come home out for our house.
There is a huge mind-set benefit to be totally debt free...it really does bring financial freedom. My advice is to pay off your home mortgage asap because any loan has risk.
Dude, retiring at age 55 is too early (in my opinion). Change jobs if you don’t like what you do. You are heading to your highest earning years. My income doubled from 65-72. The goal is not to not work.
@@CheckThisOut77 no thanks. We have thought about this a lot. I do not want to wait until I am 65. Why would I want to waste my good, healthy years?
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Interesting Roger. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Colleen Janie Towe”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field.
Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.
These low net worth figures and relatively high incomes lead me to believe that this data set is probably being skewed upwards by the generous pensions received by the silent generation. It will be interesting to check back in on these statistics in ten years or so, as I expect that the median boomer/gen Xers are less likely to have income in the form of reliable pensions than the silent generation. Great video.
Hmmmm, interesting. I hope to be around in 10 years to check on that!!
Good insight. Probably spot on.
I retired at 58 years old, debt free with two pensions, a 401k and I started drawing social security at 62 years old. Amazing how you can make more money sitting at the beach then working 10 hours a day 😊😊😊😊😊
@@timcoker1428 LOVE this!!! It's so much fun!!
@@timcoker1428 Well done sir! 👏
Last year I moved from Ontario, Canada to Florida, USA, as a retiree. I paid taxes to Canada for the first 5 months, and taxes to USA for the last 7 months. Canadian taxes included a capital gain, but my total income for those first 5 months was still less than that of the last 7 months. My tax bill for Canada was about $1900. My tax bill for USA was $0.
Florida does not have an income tax, they get their revenue from sales and excise taxes, Therefore, the bulk of Florida taxes do come from the lower working class. The Canadian tax bill covered your OHIP, unless you are a USA citizen, you cover your health costs down south. For US retirees, I imagine Medicare is equivalent in out of pocket costs in Canada. Ontario is generous, when you return to Ontario and reapply for OHIP, you are immediately eligible, no 3 month waiting period like days of old.
And your medical insurance? $$$
The best pension plan is to be mortgage and debt free. It's tax free, risk free, and allows you to live well on a lower income.
GREAT Advice Mike!!
Great advice. I agree and have been completely debt free for many years.
If you have a mortgage at 3%, with interest rates having risen, there’s a good case to be made to invest the money making, say 5%, rather than paying it back. It’s known as arbitrage. If you had a $100,000 mortgage, the amount you would make is ~$2000 a year. When I bought my house in 1992, I had an 8% mortgage, so I paid it off as soon as I could. If I had a 3% mortgage right now, though, I would think twice about how your money would be put to best use.
@@skeller61 I don't disagree on the concept, but you should consider taxes and risk.
If you can't deduct mortgage interest, the tax on income will approximate the 2% spread in your example.
Paying down a mortgage is risk free; as we've recently seen with SVB and Signature, there is risk even with "safe" investments.
A two percent spread isn't good enough for me. Maybe if we move to double digit interest rates there could be an opportunity.
@@MikesGoogleAcct Well, I just looked up CD rates (FDIC insured, so no risk unless we have far more serious issues) and they are at about 5%. So, it would basically be a risk free $2000 a year (given the $100,000) for the CD term, which you can reevaluate at the end of term. I have never had enough deductions to itemize, so interest deductions don’t interest me. If filling out a CD form isn’t worth a guaranteed $166 a month to you (plus the small amount of equity you would gain each month), then don’t do it. To me it would be a nice extra source of income.
I subscribed within the first 2 minutes of your video. I like your passion for keeping track of your money, and your concise presentation.
Bill, you made my day. Welcome aboard!
This was interesting to see the differences between the US and Canada. People here in the US do seem to focus on the mortgage “tax benefit”. It isn’t enough to bother with, when you compare it to savings thousands of dollars in interest; paying off your mortgage and investing the money you have freed up is your best option in my opinion.
It also allows me to treat my friends and family to a nice dinner out, a trip or help with buying a car (not buying it, just pitching in a little). This gives them a little leg up and allows them to save more in their saving and investing journey. I am extremely thankful for what I have and that I have enough to share with others too.
We are retired and have a morgage intenionally. The interest is 2.39% our money can be put to work at higher rates.
I love hearing this. Good for you!!!
Until Joe got in
@@melvano4014 That's world-wide inflation - not Joe.
Yes stocks - 11 to 14%
@@LopakaDeb Inflation is caused by Joe's over-spending and backwards thinking/policies. He does not control the world, just the US. It's high time to hold him responsible and vote him gone for ever
Saying that you can deduct your mortgage interest might give the wrong impression. I have a beach house that I am paying a mortgage on and still my best choice is the standard deduction. In any case, what you're looking at is the difference between standard deduction and itemized deduction. For a lot of retirees with not a lot of other deductions, standard deduction is still the best choice. For many others, it's not that big a difference.
I think this data is per household. Not by person or single retiree.
Exactly. The numbers stated (for the US at least) are for a retired household, NOT a retiree. I would guesstimate per retiree income you’re probably looking at a number that is 75% of the figure stated (maybe even less).
I retired at 54. I did the calculations with my SS and it was not a significant increase. I have a decent 401k, so I retired. I'm single and moved to the Philippines. I set my budget for $1,500 usd, but I often spend alot less because I have no family or wife. Ive had a vasectomy so no future kids to carry into my retirement life. $1500 here is upper middle class in the Philippines.
401k on the steady decline, fun
Cars, homes may be considered assets, but technically their not, they’re liabilities.
They are absolutely assets! The only way they would be liabilities or if there is more owed on them than they are worth.
There is no “average median.” There’s average and there’s median. They don’t mean the same thing.
It is not just income numbers. The purchasing power is very important too.
Statistics Canada reports that the median total income for all Canadians, aged 65 and older, was $33,100 in the most recent data (2021). Meaning that half of the people in this age group make less than this per year. And that's before tax. This is significantly different than what you report ($61,200 after tax). Where does your data come from?
I’m wondering if this data is based on household net worth and income.
@@aviselvig2520 That is per individual income, and provides no information about net worth.
Amid the prevailing economic crisis, a significant portion of the American population encounters challenges in securing a comfortable retirement. For many, their retirement savings fall significantly short of the required amount. In this context, a pressing question arises: should I withdraw funds from my 401k to purchase a property, or diversify my investments into stocks for a sustainable cash flow? My ultimate aim is to maintain a lifestyle that aligns with my preferences and needs post-retirement.
Over an extended period, bonds and other fixed-income instruments have been relied upon to generate the necessary yield, ensuring a stable income stream for retirement necessities. The significance of ensuring financial security might be the driving force behind why individuals from the boomer generation are increasingly seeking guidance from advisors when planning for retirement.
A wealth of valuable insights has been shared in this forum. I find myself at a critical juncture concerning my portfolio, aspiring for its growth as I approach retirement. How can I establish contact with this esteemed professional for guidance?
Excellent share, just inputted her full name on my computer and searched online to find her webpage, top-notch credentials. I've seen commentaries about advisers, but not one looks this phenomenal.
Are those income and net worth medians for each person or for the couple? Big difference!
It was made crystal clear in the video that you were presenting MEDIAN net worths, MEDIAN incomes, etc. May I therefore suggest that you remove the word AVERAGE from the title. This isn’t just nitpicking. For example, the AVERAGE net worth of a over-65-year-old led household in the U.S. as of 2019 was $1,105,000 while the MEDIAN was $260,000. “Average Median” is not at all clear.
I don’t know, I clicked on the video just to figure out what the heck an average median is 😂. New math?
Good point. The average networth in the city where Jeff Bezos lives will be way higher than the median. Two totally different metrics. Saying average median is like saying height weight.
We were taught that; mean, median and mode were all different kinds of averages. But, yeah, generally when somebody says average then mean mean.
@@eturnerx uh huh
For several years, US homeowner's are not allowed to write off the mortgage interest, the IRS changed the rules and stopped this deduction. FYI
What is a median average? Shouldn't it be either one or the other?
I’m a high school drop out in TX and I make $49,000. Retirement pay.
And I have no debt at all. I can’t believe I’m doing better than the ave.
What is "average median"? I remember studying "Mean", "Median" and "Mode".
There are two sides of this equation. You focused on income, but the other side of the equation is cost. We took our U.S. retirement, which would have allowed us a very modest existence in the U.S. and relocated to Ecuador. Our expenses are roughly 1/3 what they were in the U.S. and it allows us a much higher quality of life with the same amount of income.
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
You’re mistake was buying 3 houses didn’t you learn anything from the past 3 years that you don’t own those properties but the government does remember Covid government can make you let tenants live rent free on your property for free and don’t forget about your mortgage can be called upon from banks , also depending on market conditions you could lose most or all your equity so at retirement you could face the possibility of returning back to work which would be horrible,Let’s not forget maintenance and upkeep as you would be a slave to your properties No I would not want to be in your shoes when I am 65 plus I want to be cash rich and just live in my home personal property and only worry about my own property,Their are other ways of obtaining wealth without all the headaches and also remember you may say that you could sell these properties but you will face huge tax consequences or you will say you could do a 1031 but sooner rather than later the tax man will be their with his hand ✋ out to get his cut,these rental properties are only applicable to the very rich who owns huge huge properties and hotels like Donald Trump,so if I were you I would rethink my strategies but of course that’s only my opinion been there done that Good luck to you in your endeavors
The percentage of people who can deduct mortgage interest from their taxes has decreased significantly as a result of tax laws a few years ago. The standard deduction has increased significantly meaning you had to have more deductions (like mortgage interest, local taxes, and contributions) to make it worthwhile to itemize deductions and there is a limit to the amount of local taxes that can be used as an itemized deduction. As a result far fewer people in the US use their mortgage interest as a tax deduction.
Yes. Exactly right.
Now I have more knowledge about personal finance. I just subscribed to your channel. Big ups to everyone working effortlessly trying to earn a living while building wealth in this recession. I’m 45 and my husband is 51, we are both retired, no debts. We are planning on relocating to Thailand. We are currently living a frugal and financially savvy lifestyle and generating passive income even during this recessionary period. Our commitment to saving and investing in the financial market has enabled us to maintain this lifestyle and continue earning monthly passively through investment;:
Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.
No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Claire Martha Magalhaes to create a long-term investment strategy, and she assisted us in managing our investments while we focused on my jobs without any concerns.
Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Thank you for talking about your financial consultant. I will definitely look her up and try to get in touch with her. I have realized that relying solely on UA-cam videos and attempting to manage my finances on my own hasn't been very effective.
Interesting, is this single or couple average income..
I am very curious about the income is it individual or household?
Great point on withdrawing. For people who have been savers and investors for decades, it is quite the paradigm shift to withdraw. Instead of being a great experience it freaks you out. Also, I remember a couple of weeks before my last day, I freaked out thinking I wouldn’t be receiving anymore paychecks. People need videos like this to help them make the transition smoothly.
Thanks so much Gay!!! It can be scarey but also fun!!
Info presented in a positive, straight forward, simple way with humour and grace. Women in finance seem more inclined to cut to the chase, no BS. Keep it up.
Oh Kathy, you've made my day!! THANKS so much for your feedback!
average median? that's new to me, normally average and median are being used separately
I would offer this surrounding Net Worth: Don't consider "Things" House, car, boat, aircraft unless you definitely Will convert them to cash. You Need a residence and transportation at a minimum. As a result, they really have no price. A conservative approach is Liquid assets less debt. That gives a truer picture of what you have On Hand that establishes your Net Worth.
Well then you are calculating net worth incorrectly. Too bad you can’t redefine things yourself.
@@bb-1359 If you Can't/Won't/Don't convert them to liquidity, what are things worth as cash? Do you take a square of roof shingles to the store to pay for groceries? I thoroughly understand the concept of Net Worth. Nonetheless, a Conservative approach to net worth is Liquid Assets less Debt. That is a better measure of your ability to say "I'll pay for it" when the furnace quits, the car blows up, and the roof leaks.
You don’t need 1-2 million liquid to retire. 1-2 million net worth in the real sense will do
I like saving - it gives me a sense of security to the point how I don't know how I'll ever be comfortable depleting savings in retirement
I agree. I love seeing my money (hopefully) grow! It’s a very different mindset to take money out!
Retired 6 years ago. Only income is Social Security. Retiring early was the easiest decision I have ever made. Anybody who tells you they like going to work isn't telling you the truth. Please don't misunderstand, I'm not saying people don't like their work, because I know people do, but we should never lose sight of the reason we went to work in the first place. I never went to work because I wanted to, I only went to work because I had to. True it is better to like what you do for a living, but it's more important that you are making a living. That said, I made sure I didn't have to work one more day than I needed to so when I was getting close to 60 I got laser focused on being ready to walk away at age 62. Planning is the key and it's well worth you time to plan.
Sounds like you are enjoying life!! Good for you!! I love to hear it!!
Do not think you are including everyone when you state that we work because we have to, that we wouldn’t if it weren’t for need of the money. You have no right include me in that mind set. I work because I enjoy it and always have. I am a nurse, I worked at the bedside through COVID, have volunteered at most major hurricanes for the last 25 years…because I want to. I an sorry you have had such a poor experience with work. Sometimes it’s not the experience but rather the attitude.
@@Dit1160 I thought your name was Karen
Karen needs a vacation.
@@Dit1160 Sorry, but you missed my point entirely. I never had a poor experience with work. I also enjoyed my work, but I also understood the reason I went to work in the first place. Unless you are born into wealth, or marry into wealth, the need to go to work is quite obvious. I even made a point to say it's better if you like what you do. But, at the end of the day the reason we work is to gain the income needed to have a good life. Things like food, clothes, and a roof over your head all cost money, so we go to work. Once we no longer need the money to provide those things, we can retire from work. Anybody and I mean anybody who doesn't enjoy retirement more than working is doing retirement wrong.
Interesting video. I have been retired in the US South for a couple of years and am still adjusting to the financial differences from when I was working. In my case, I elected to carry a mortgage because my interest rate is right at 3% and my retirement funds are growing at a faster rate than that. I did have the option of buying a smaller house and having no mortgage, but right now, I have a better quality house and my retirement funds are still growing faster than I am taking the money out. I have also decided that I will go back to work part-time this winter, not because I need the money, but because I get bored when the winter weather keeps me in the house, and I miss the social interactions from a workplace. Whatever I earn from this will also affect my retirement finances.
Stephan, we share a very closely related status as I too am residing in the south AND even the mortgage interest rate of 3%. I have a mortgage again due to having to live/work overseas due to my wife's job. I must be one of very few retired military guys who has not paid off their mortgage but thanks to a pension/disability/SS (soon), and smart investments early on, I do not fear the future. Good luck to you.
I admit that I have not waded through all the comments below (so if this has already been asked, I apologize), but just wanted to be clear if your numbers are per individual or per household?
I just retired in March at the age of 53 in Upstate NY. I enjoy your content very interesting info regarding median networth and income.
Scott, You've just made my day!! Thanks for responding!
At 55,I retired with a decent pension from my RN job.Am collecting Social Security benefits as well.. Glad for you retiring.I hope you have a decent pension .
@@christopherhennessey8991 Wow, retiring at 55 is a GREAT accomplishment! Congratulations, I hope it's all you ever hoped for!!!
Your comment about the psychological impact of taking out of the retirement fund is very well made
US Air Force pension, Coca-Cola pension, and social security. My wife has a huge teacher's pension, and a small social security check. Combined? In January, we will go over $100k a year, in pensions. House payment and single car payment is about $2k a month. This leaves us over $4k a month disposable, about a thousand of which takes care of all insurance and utilities. STILL leaves us with $3k in blow money.
Fascinating how much higher the median net worth is for Canadians versus the US. Canadians have socialized health care too. Would love to know the details.
But, she didn't translate the median Canadian retiree income into U.S dollars, which made it seem higher
than it actually is!
It’s not a 1:1 comparison because first you need to convert CAD to USD. With respect to socialized medicine… at the age she was referring to (65 and older) US retirees also receive socialized medicine.
@@MaxPower-11 yes Americans do get Medicare coverage at age 65, but Medicare is not free. There are monthly premiums for Medicare for all but the poorest Americans. In addition US Medicare does not cover 100% of medical costs. US Medicare actually covers only 80% of Medical costs. Many Americans carry additional private insurance to pay what Medicare doesn't pay or they have "Medicare Advantage" coverage that comes with deductibles, copays and other significant coverage limitations.
@@todddunn945 Or they get a Supplemental plan G or N which covers all of that, for very little money. It's all subsidized medicine.
Canadians also pay into CPP - Canada Pension Plan, their entire working life. When you retire you will receive Old Age Security and CPP. I'm currently collecting both and living comfortable with no Medical expenses.
Average and median are two different things. There is no such thing as an “average median”. 😊
Average median income for 65 year old retiree? How are people not working earning more per year than I am working full time? Something seems backwards with our system if I'm understanding this correctly. This is also no longer possible to do for anyone born after 1980 unless a top 20% earner. It's a paycheck to paycheck world from now on.
With the higher standard deductions in the US, the median married retired couple probably does not deduct mortgage interest. If they have a sub 3% mortgage they will not pay off the mortgage earlier as current high-yield savings are around 4.40% and north of 5% for money market funds.
These broad numbers are good for ball park considerations. Where you live in the USA or Canada can make a huge difference. $60,000 a year goes a lot further in Texas or Mississippi than in New York City or San Francisco.
Thanks for adding this. It really does make a difference.
One possibility of the disparity between the two countries regarding net worth may be linked to the price of one's home since it is the largest asset. While certain states like California and Hawaii have very expensive homes, many states have homes which are much less expensive. Thank you for the interesting video.
Great music Maureen first dance of the day. Thank you so much for info I’m at $252k today and you’re making me feel good about it. Thank you for keeping us informed with good info
Yep, as long as you spend less than you bring home. You will not worry about money. However, friends die or move away to be close to family ( my issue) or you find yourself with a health problem. ( thankly not yet.)
So much depends on total income and if you have children, medical issues or have been divorced. Many of us do not make large amounts of money and raise children. The amount we can save is much less as a result. Or in my case, I have had lifelong health issues, was divorced at midlife and have not been able to work fulltime and that has seriously impacted our retirement income. My husband was divorced at age 50 and all these issues impacted our retirement funds. My husband never made more than $40,000 even at his top earning end. As a result, we only had less than $300,000 net worth-including for the two of us (USA) our tiny, 100-year-old mortgage free home.
So much really does depend on so many factors. My hope is no matter what, you live your life to the fullest, within your circumstances. Thanks for sharing Donna.
I agree about the change in mindset required to shift from accumulation of retirement assets to spending those assets. My parents, for example, struggled with that change until very late in their lives. I suppose that was due, in part, to their having lived through the depression. Similarly, even at age 75, I still find it very difficult to spend money from my retirement accounts.
I do have a couple of quibbles with your income comparison. Since the US greatly increased the standard deduction a few years ago, most Americans no longer deduct their mortgage interest since most people do not have enough total deductions to itemize rather than take the standard deduction. US incomes are also higher relative to net worth because US Social Security is generally higher than the sum of CPP and OAS. The maximum US social security benefit is about $3,600 US in 2023 and the maximum CPP+OAS is only about $1,500 US in 2023. Consequently, all other things being equal an American needs less income from other sources to achieve a given income level than a Canadian does. Taxation does need to be considered for after tax income, but US income taxes are typically less than Canadian and taxes may be much lower for an American if they live in a state with no income tax. The differences in taxation between Canada and the US coupled with the differences in Social security/CPP+OAS make comparing incomes misleading particularly since all but the poorest Americans do have to pay for health coverage in retirement which Canadians do not. The cost differences in health coverage alone mean that an American needs a considerably higher after tax income than a Canadian does to have equivalent disposable income.
Exactly the point that I made in another comment.
Thank you both. I’m 69 and have been retired for over ten years. My wife died too young to understand that I had planned well for our future. My pension is about $100K a year and I have a great portfolio. My advice to young workers is to start a Roth account and give til it hurts while you are young. When you build a family you may need to back off the contributions, but you’ve got a good start. I’ve got 7 siblings and have baglady contracts with all of them. We joke about winning Powerball and building a family compound.
Question is whether the income is from working or non-working sources.
Average OR median income would make more sense . . . They’re different calculations.
And contrary to popular belief, my Social Security payment comes to just enough to get a big Mac without fries, and I don’t even get enough to supersize it, unless I get a pay raise as well as pay my own Medicare
you seem like a nice person and i can tell you are a good presenter, but that 1 min and 23 second intro with that strangle music that slowly creeped into the video really has to go. Just start the video at 1:23 and it will be great :)
Average median? is there such a thing?
I hear you,lol. There are three ways of computing an average: mean, median, or mode. Retired teacher here. To get the median, you list the numbers in rank order, then take the number that falls in the middle.
@@Carolmaizy there is only one way to calculate an average. It also happens to be the same as the mean, so they are synonymous.
Are pensions considered when calculating net worth? Some have a guaranteed 10 year income.
You are using household income, individual US income is about $28,000. If the husband dies first, his ss check is gone, and the
wife has less to pay the fixed expenses in life, like insurance, property tax or rent, medical bills...
Are these figures per individual or household? That is, did you divide the net worth (or income) of a household by 2 for a married couple?
Your numbers are better than what I’ve seen in America
I also Subscribed ! I like the Monday video release thinh not that Mondays matter in Retirement because everyday is Saturday!
That’s a perfect saying for retirement!
Wow. My wife and I are retiring this Jan of 23. Based on these numbers we are very blessed to have zero debt, cash reserves, investments, real estate, and a healthy state pension including social security. Our numbers are above the US median on income by a factor of 2 and our net worth is over the US median by a factor of 6. Thank you for these videos.
What a fantastic comment!! It's GREAT to see how others have prepared and how exciting it is! Best of luck in January! I can't wait to hear all about it!!
Cool. Is your net worth a secret?
@@DavidEVogel I don't guess so. Hard to place a value a guaranteed state retirement and social security over of 85K per year. My sister and I own 40 acres of commercial real estate we are developing not counting our home and other assets. No debt with a 275K nest and over 130K in cash reserves. We are certainly blessed.
@@DLTJR1959 You are doing just fine. Enjoy your retirement.
We have a lot of the elite rich in the US, so that means that most of us are poor. The skew is insane.
I don't think your car should be added in your net worth it is a liability not an asset in my eyes it is something that you have to pay to maintain and keep on the road Insurance gas and so on
If it can be sold, it’s an asset
@bb-1359 that's like counting your clothes you could sell your clothes there and asset....LOL
@@martyg1717😂😂
Many wealthy folks calculate their net worth on assets with a theoretical value: assets that cannot convert to their stated cash value and/or could conceivably disappear due to events beyond their control.
$61000 after tax income per individual? that's pretty high even with a lot government workers with DBs.
No debt here and about $3M in net worth in the US as a couple.
New subscriber. Really enjoying the format snd the content. Thanks You.
THANKS so much. You have literally made my day!!
@@Lifestartsatretirement Keep up the good work. 👍
Is this taking Medicare + retirement savings income in consideration or is it just the later?
It's just a reminder that there are people living off more or less. Hence unless you have health issues that cost you money, much of your spending will come down to your lifestyle and how comfortable you are with it.
Great way to say it. Thanks.
BIG BIG HUGE ENORMOUS GIANT PROFIT WAITING FOR YOU TO CLAIM, SHOW ME YOUR MONEY.
Average or median? They are 2 different things
It's actually per family not individual, big difference, a little misleading.
What is an "Average Median" ? Do you mean to say median ??? Where were you in Stats 502 ? Hitting the rock pipe ?
What’s an average median?
Median USA net worth is about $270,000. Median income $47,500.
Why is net worth important if I do not plan on selling house?
Is this per person or house hold ?
I think the bigger issue between Canada and America is the cost of healthcare and how we are basically brainwashed to think that if we aren't buying something everyday, we are failing.
Well said.
Are these numbers family income?
Many of us are not paying off our homes because of advice from financial planners. A 3% loan is a great thing.
The tax rules in the USA have changed so that the standard deduction increased and eliminated the advantage of the mortgage interest deduction for most people. It was part of the Trump tax cuts.
Thanks for sharing. I'll look into that. Great information!
@@occamsshavecream4541 Thanks for letting me know!
@@Lifestartsatretirement So just an fyi - the U.S. standard deduction is now $24,000 per the trump changes.
@@LopakaDeb Thanks I've heard that a few times. Great to learn more information all the time!!
Yes, I was surprised by her comment. Most Dont have an advantage in writing off mortgage interest.
If the net worth in the U.S. is 266K, How does that translate to 47K a year in income. Something is off about that. Basically they are getting 4K a month. The 266K sounds like their home value, but even it if were all in investments it still wouldn't put off 4K a month. Some information on how someone with such a low net worth is generating 4K a month in income would be great.
Household not individual
Thanks, this was interesting information. I seem to be right there in the median. For now. My advisor wants me to live on my savings for 3 years to collect social security at 70. Im sure making that first withdrawal is going to hit me hard, as you so aptly pointed out. But im going to try to keep my nerve. Im happy my remaining mortgage has a 3.5 interest rate. I sometimes wish I didn’t have a mortgage at all, but at least I have a stable housing cost. Just wondering, and maybe you said, but are these households two incomes or one?
How's this for confusing. I PLAN to have a mortgage so long as the rates are manageable. I can make more than the interest rate with investing, so I borrow. I had the money for a car, got a loan and invested the money and the car is almost paid for. When it is done, I will have the car and the money. I started off with around 70% of the car payment covered by the investment, but there was a deferred component (bulk pay out in addition to interest) and the end of the term I took another investment with the extra included. This means my new income is 118% of the car payment.
I don't really need to have the house paid off, I just need to have the money to pay the house off. My investments for payments are secured loans. The bank increases the interest rates, so do I.
@@Todd.T LOVE this strategy!!! Thanks for sharing!!
@@Lifestartsatretirement Glad to hear it because there is a part two that goes for those who own their homes. You'll notice there is a bit of an attack on elderly people that may own their home. Because they have no mortgage or liens on the house, it makes it that much easier to assume the property for thieves. If there is a bit of a mortgage on it, the bank would be involved in the sale and anybody trying to take possession of the property would trigger the bank calling you asking you about the sale of your home.
In the grand scheme of part two, you have two businesses. One that owns the home and one that manages the home and you rent. This does a few things. If I slip and fall on your property and decide to sue, the management is responsible and can only be sued for the insurance amount. The asset is protected under the other business. I'm just a renter.
You are paying rent and in some provinces you can claim it on your income to reduce taxes or there is another benefit. Any repairs are done under the business and is tax deductible. You fix your roof and you have a 60k income. You pay the taxes on 60K income AND you pay full price for the roof.
There are also RRSP meltdown strategies to transfer money from your RRSP to a TFSA and reduce the taxes you are paying. I'm not old enough to be there yet, but everything is falling into place. I do practice what I preach. I'm loving being more efficient with money and taxation. Everybody that I know with a lot of wealth has a tax expert that takes care of these maneuvers lawyers and all. I am not going to retire and HOPE the money lasts. I don't do hope that well.
Before you throw up on anyone what's an RSP?
Forced retirement in 2008 financial crisis, I wish I was getting a half million. I don't but I do get $300 (US) in food stamps.
I just retired at 59 from the postal service in June 2024. I cant believe I'm finally free from all the stress and drama of the work place. In the process of putting a house on 40 acres and getting out of the city. Life is good! Praise the Lord!
Fabulous!! Can’t wait to hear more!!!
The average median? must be the new math at work. 😂
Great video
No pension, no debt, zero net worth,no retirement account or plan, no house, minimal savings, no children, no wife, but hey, there's still some berries in the woods that the bears missed.
I always say make the best of your circumstances!! Sounds like you are doing just that!!!
Under current US tax code most people are not able to deduct their mortgage interest.
Some people have not paid off their mortgage due to quite low interest rates in the last few years, due to the fact that with rising property values and high investment returns one could make more money keeping the mortgage rather than paying it off.
I personally believe this is a risky strategy unless you have substantial wealth, with current economic conditions especially.
In terms of the income numbers, it gets quite confusing! A lot of figures quote HOUSEHOLD income, that would be a lot of couples, but also some singles or families.
Other stats use the term “retiree”
The income numbers do usually include all forms of income, as far as I can tell, and decline at ages over 65.
Net worth does usually appear to be a household number.
As a point in the US the max SS check at age 70 is about $4200, so that is about $50k per year, and few wait that long or have the credits to get the full amount.
The average SS check is only $20k per year per person
For the Canadian numbers: are you using CAD and not USD? if yes, then you are comparing apples to oranges...